De Guzman, Ericka P.

BFI
BSBA FM 2 – 5 ASSIGNMENT 4

Answer the following questions:

1. What are insured deposit? Give examples and explain.
People find a way to ensure their money, maybe put it in the bank, invest it or buy
some properties and the like. The PDIC was established in 1963 by the Republic Act
3591, function of this to create a bond of trust with people to encourage people to
deposits money in the bank in return create an interest and bank may use the borrowed
money to give loans also to other customers. Meaning all the deposits of the customers
from the bank will be covered by the insurance. Insured deposits applies to the amount
owed to any depositor for depositor for deposits in an insured bank net of any
depositor’s liability to the insured bank as of the closing date, but not in excess of the
maximum insurance coverage for deposits. The overall Deposit Insurance Allowance is
P500,000.00 for deposits per bank as of June 1, 2009. The single account are covered
full deposit insurance of P500,000.00 separately from joint accounts. The higher the
depositors, the higher bank may be lent to give a loan generating its income or profit
from the borrowed money. In return depositors have interest and also create some
money while they put their money in the bank/
Example: Anna Dela Cruz and Joy Tapado have a joint account. Anna deposited
P400,000.00 while Joy deposited P200,000.00. The joint account is only covered with
the maximum insurance coverage for deposits which is P500,000.00 even though the
combined amount of the deposits are total of P600,000.00. Anna Dela Cruz and Joy
Tapado will divide equally the P500,000.00, so it means P250,000.00 for each of the co
– owners of the joint account.
2. Are Joint Accounts insured?
Yes, they are separately covered from single accounts. The maximum
deposit insurance allowance is P500,000.00 divided equally to the co – owners of
the Joint Accounts. Can only receive equally from the maximum deposit
insurance allowance even one of the co – owner exceed P500,000.00. If the
account holder of the joint account are a natural person and juridical entity, the
policy says it shall be presumed solely to the juridical entity.